According to carnevoodoo, "Premier Stainless has a pretty good reputation for financing locals" (Post #312).

In this case, the City is repossessing the equipment (and no one seems to be protesting it). Therefore, their loan must be secured by the equipment.

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I forgot to mention the judge granted El Cajon's motion for relief from the automatic stay. They are now free to pursue legal remedies to against "All of the Debtor's interest in all fixtures, appurtenances, equipment, leases, rents, proceeds, accounts and inventory."

This thread was gathering dust, so i decided that another update was necessary.

The legal name if the company is Downtown El Cajon Brewing Co., Inc. The corporate status still suspended per the website of the California Secretary of State, so they really have no business filing any pleadings in lawsuits right now. ECBC did file a motion recently in the eviction lawsuit asking permission to file a cross-complaint against the landlord. That is generally not allowed in an eviction lawsuit because of the quick nature of eviction lawsuits. It was probably a delay tactic, but I can't tell from the court's docket if the eviction trial is still going forward on April 5th.

In other news, the City of El Cajon finally filed a lawsuit against ECBC as well as both of the Meadows brothers. Naming Stephan Meadows makes sense because I think he's guarantor of the loan to the corporation, but I'm not sure why David Meadows is a defendant as well. The lawsuit is 52 pages and costs at least $10 to download a copy, so I passed on that.

There's some really good jazz/blue music there tonight, so I'm thinking about a pizza and some beer.

Beer Trader

This thread was gathering dust, so i decided that another update was necessary.

The legal name if the company is Downtown El Cajon Brewing Co., Inc. The corporate status still suspended per the website of the California Secretary of State, so they really have no business filing any pleadings in lawsuits right now. ECBC did file a motion recently in the eviction lawsuit asking permission to file a cross-complaint against the landlord. That is generally not allowed in an eviction lawsuit because of the quick nature of eviction lawsuits. It was probably a delay tactic, but I can't tell from the court's docket if the eviction trial is still going forward on April 5th.

In other news, the City of El Cajon finally filed a lawsuit against ECBC as well as both of the Meadows brothers. Naming Stephan Meadows makes sense because I think he's guarantor of the loan to the corporation, but I'm not sure why David Meadows is a defendant as well. The lawsuit is 52 pages and costs at least $10 to download a copy, so I passed on that.

There's some really good jazz/blue music there tonight, so I'm thinking about a pizza and some beer.

What does it mean that the Corporate status is suspended? Me not know legal mumbojumbo.

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It means that they either haven't kept up on yearly filings with the Secretary or State (which take approximately 5 minutes per year and cost under $50) or haven't paid their state taxes ($800/year minimum for CA corps).

It means that they either haven't kept up on yearly filings with the Secretary or State (which take approximately 5 minutes per year and cost under $50) or haven't paid their state taxes ($800/year minimum for CA corps).

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So this is bad. Like crossing the streams, bad? "Ray, you said crossing the streams was bad."

So this is bad. Like crossing the streams, bad? "Ray, you said crossing the streams was bad."

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Carl would be more able to answer that from a legal perspective, I'm only familiar with it from a business owner perspective. I've always kept my filings/taxes current, but I've been told by friends who lagged that it's actually very easy to get current on your filings and get paid up (assuming you have the money). Considering ECBC has only been open for less than two years and apparently hasn't turned a profit, they'd likely be looking at a couple hours of work and < $2000 to get back into good standing.

The fact that they haven't taken the most basic steps to maintain their corporate standing would seem to indicate that they have no chance of surviving their current legal challenges, but stranger things have happened.

Carl would be more able to answer that from a legal perspective, I'm only familiar with it from a business owner perspective. I've always kept my filings/taxes current, but I've been told by friends who lagged that it's actually very easy to get current on your filings and get paid up (assuming you have the money). Considering ECBC has only been open for less than two years and apparently hasn't turned a profit, they'd likely be looking at a couple hours of work and < $2000 to get back into good standing.

The fact that they haven't taken the most basic steps to maintain their corporate standing would seem to indicate that they have no chance of surviving their current legal challenges, but stranger things have happened.

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Sometimes corporations are suspended to failing to file documents that are required by law such as the updating the information on who are the officers and directors. Sometimes the reasons are more serious such failing to file tax returns or failing to pay taxes. Reinstating could be easy if they just need to file some missing documents, but it could be harder if they haven't paid taxes.

When a corporation is suspended, it loses its rights, powers, and privileges to conduct business in California. it loses the right to use its business name in California and another company could theoretically take over the name even as we speak. The corporation cannot initiate lawsuits, defend itself against lawsuits, or enforce its legal contracts. If a corporation enters contracts while suspended or forfeited, it can never enforce those contracts unless it obtains relief to d so.

So the consequences can be quite drastic if they don't take steps soon to revive the corporate status.

One more minor update. The City of El Cajon "categorically rejected" some type of proposal by ECBC to move the brewing equipment to another location. The next hearing on bankruptcy court is April 15th.

Interesting reading. I am not worried about this law suit. My name being on that list only goes to show that Douche Bag hasn't held up his part of the deal, but I have my lawyer taking care of it. He hasn't held up anyone's part of the deal obviously.
I do know however, that Douche Bag was inquiring about the old police station and possibly other places to "move" the brewing equipment/Business. Sounds like he is totally delusional...

Interesting reading. I am not worried about this law suit. My name being on that list only goes to show that Douche Bag hasn't held up his part of the deal, but I have my lawyer taking care of it. He hasn't held up anyone's part of the deal obviously.
I do know however, that Douche Bag was inquiring about the old police station and possibly other places to "move" the brewing equipment/Business. Sounds like he is totally delusional...

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I had heard about their efforts to find a new location, but the old police station seems like it would be an odd move and is news to me. On the other hand, I never had understood why that Long John Silvers on Fletcher Parkway is able to stay in business.

Are you an actual signer on the loan documents? I haven't seen anything in any of the bankruptcy court filings that would indicate that you personally liable for the money borrowed from the development district.

As of today ECBC is closed. Douche Bag finally threw in the towel. Leaving the place to the landlord. Who ever started the rumors that the Landlord and I have been cooperating is a total fantasy made up by DB. I wonder what other fantasy stories he has devised?
So he just walked out of the place leaving food and beer and everything is what I hear......

Beer Trader

As of today ECBC is closed. Douche Bag finally threw in the towel. Leaving the place to the landlord. Who ever started the rumors that the Landlord and I have been cooperating is a total fantasy made up by DB. I wonder what other fantasy stories he has devised?
So he just walked out of the place leaving food and beer and everything is what I hear......

As of today ECBC is closed. Douche Bag finally threw in the towel. Leaving the place to the landlord. Who ever started the rumors that the Landlord and I have been cooperating is a total fantasy made up by DB. I wonder what other fantasy stories he has devised?
So he just walked out of the place leaving food and beer and everything is what I hear......

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I drive down Magnolia almost ever night and my wife and I have the same conversation on the way home: "Do you think they are still open?" I'll I will find out around 5:30 or so tonight to see if this is an April Fool's joke or not.

As for the rumors that you were cooperating with the landlord, that story is easy to trace. That's part of a declaration filed in the bankruptcy court.

Carl. I would not joke about this subject. As far as I know, he bailed. Probably on his way to a Kingdom hall in Mexico with a bag of cash.

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The sign on the door says "Due to onsite construction We are closed for today". I saw no evidence of construction and other businesses in the building such as Starbucks and Quiznos were open. Everything appeared to be in like all the tables and chairs.

I walked around to the back entrance where the brewing equipment is located. The door was open and I saw a guy that i didn't recognize, so i asked him if the place was closed permanently. He said something like "I don't know".

Beer Trader

From their Facebook just now!

"El Cajon Brewing Company
As of Monday April the 1st the restaurant and brewery is under new ownership. The restaurant will be temporarily closed. It was a an unexpected change in ownership, but over the weekend we hammered out a deal the was very generous for all.

We do not know how long it will take for the new owners to reopen the business but we are confident that it will be soon. We wish them the very best of luck and we hope they are highly successful."

"El Cajon Brewing Company
As of Monday April the 1st the restaurant and brewery is under new ownership. The restaurant will be temporarily closed. It was a an unexpected change in ownership, but over the weekend we hammered out a deal the was very generous for all.

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Wouldn't a sale of the company require approval of the court, which since the corporation isn't in good standing, they can't even legally do filings?

There are so many variables here and so many pieces to the puzzle that need to be addressed before the sale can go through. Maybe they have a plan of action that could work, but here are some things to consider:

The landlord's eviction lawsuit is still set for trial this week;

The City of El Cajon is still suing for repossession and nonpayment;

The corporate status of the corporation is still suspended and they technically cannot enter into contracts nor filing legal documents with any court; and

There are no filings with the bankruptcy court regarding this sale. If they don't move to dismiss the bankruptcy, they'll either need to file a plan of reorganization get the sale approved by the court.

If you read up on what has been happening with Hostess, they might be trying the same thing here. The Hostess bankruptcy is a Chapter 11 liquidation rather than a Chapter, but it is too early to tell exactly what is happening until they file something with the court.

The spin doctors are hard at work on this one. The debt to the City is $601,000 and the debt to the landlord has to be at least $150,000 or so. If the brewing equipment is worth less than $300,000 as some have suggested here and the business hasn't been profitable, I can't imagine that anybody would be willing to pay nearly what the City might be expecting unless they truly had some great business plan to really ramp marketing and production.

The spin doctors are hard at work on this one. The debt to the City is $601,000 and the debt to the landlord has to be at least $150,000 or so. If the brewing equipment is worth less than $300,000 as some have suggested here and the business hasn't been profitable, I can't imagine that anybody would be willing to pay nearly what the City might be expecting unless they truly had some great business plan to really ramp marketing and production.

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A new brewer wouldn't pay anything for the business because it has negative equity. If the new brewer is smart, they might assume the existing loan (non-recourse without personal guarantees) after it was restructured and a good portion was written off. They could also work out a percentage lease with the landlord with a very low minimum rent.

The bankruptcy probably wiped out the debt of the old rent to the landlord. That wouldn't be an obligation for a new brewer.

A new brewer wouldn't pay anything for the business because it has negative equity. If the new brewer is smart, they might assume the existing loan (non-recourse without personal guarantees) after it was restructured and a good portion was written off. They could also work out a percentage lease with the landlord with a very low minimum rent.

The bankruptcy probably wiped out the debt of the old rent to the landlord. That wouldn't be an obligation for a new brewer.

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The bankruptcy hasn't wiped out anything at this point and I can't imagine why anybody would by the corporation because of all the debt. It would make more sends to by the assets at a substantial discount.